German Minimum Wage at €13.90 Triggers Cost Pass-Through to Customers as Customs Sweep Catches 17 Violations
Published on 06/18/2026 at 22:43 | Redaktion boerse-global.de
Nearly one in four German companies must adjust their pay structures to comply with the €13.90-per-hour minimum wage that took effect at the start of 2026, according to a DIHK survey of 15,000 businesses. The hardest-hit sectors are hospitality, where half of all enterprises face adjustments, and retail, with 38 percent affected. Firms in eastern Germany report an even higher need for change at 29 percent.
To absorb the added expense, 40 percent of affected businesses are raising prices. In the restaurant and hotel industry, one in four operators also plans to cut staff.
The enforcement arm of the federal government is already on the case. During the first week of June, 60 customs officers inspected 23 agricultural operations in Thuringia and southwestern Saxony. They interviewed 135 workers about their conditions and flagged 30 potential violations of labor law. Seventeen of those cases involve suspected underpayment below the €13.90 floor, which now applies to farm labor as well. Other probes target unpaid social security contributions, illegal employment, and breaches of reporting requirements.
Early wage data from the first quarter of 2026 show the increase is benefiting low earners most. In Hamburg, nominal wages for the bottom income group surged 9.8 percent. By contrast, real wages across all groups rose only 1.9 percent over the same period.
Parallel to the wage floor, the government is pushing a reform of the Working Time Act that would grant unionized companies more flexibility. Labor Minister Bärbel Bas has circulated a draft bill proposing a shift from a daily to a weekly maximum working hours limit, along with a general obligation to record working time electronically — though trust-based working time would remain permissible under certain conditions. A coalition summit scheduled for July 1 is expected to resolve disputes, as business associations and opposition lawmakers criticize that the flexibility applies only to firms with collective agreements.
The next increase is already fixed: on January 1, 2027, the minimum wage will rise to €14.60 per hour. Apprentices in non-union shops are also seeing improvements. Since the start of 2025, the minimum training allowance stands at €682 per month in the first year, climbing to €955 in the fourth year.
The German Farmers’ Association continues to push for a reduced minimum wage for seasonal workers — roughly 80 percent of the full rate. Bas has rejected the idea. Agriculture politicians from the Christian Democratic Union predict no special exemptions will be possible within the next three years. Their advice instead: cut red tape and step up targeted recruitment rather than pursue wage carve-outs.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
